That's not necessarily true. Without publicly subsidized highways and roads, there would be more incentive for innovation in transportation. The existing transportation paradigm has been propped up by government for decades and we've seen little innovation as a result. If the private sector can send a rocket to space for a fraction of the cost, why couldn't they figure out a way to move people and goods around for cheaper too?
Maybe so. I don't think so, but maybe.
Do your really think that without the Interstate Highway System Act of 1956 being enacted that there would have been innovation in transportation means and technology that we have seen up to this point? I don't?
Would Elon Musk ever even bothered to try to build a Tesla and shoot it into space if we were all still driving on back roads and state routes? I don't think so.
Private sector and other technological innovation is also sparked and supported by public infrastructure. I would suggest and argue that public sector infrastructure is the foundation upon which private sector innovation is possible.
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